OREANDA-NEWS. On 16 February 2009 Credit-Rating, a nationally recognized credit rating agency in Ukraine announced that it assigned a long-term counterparty credit rating of uaBB+ (uaBB plus) to Kiev-based Nidan+ LLC (company). The companys principal activity is production of juices, juice-containing beverages and wine. In the course of analysis Credit-Rating considered company's financial statements and its other inside information.

An obligor or a debt liability with uaBB credit rating is characterized with the LOWER THAN SUFFICIENT creditworthiness as compared to other Ukrainian obligors or debt liabilities. This level of creditworthiness is strongly affected by adverse changes in commercial, financial and economic conditions. A plus "+" and a minus "-" signs indicate intermediary categories compared to the standard categories (grades).

Factors maintaining the credit rating

Company's strong market positions.

Growth in companys key figures recorded over the past few year, specifically over 9M2008 as compared with similar year-earlier period: the net sales income increased by 15.1% to UAH114.2m, the EBITDA rose 2.2x to UAH11.4m, and the EBITDA margin advanced to 10.0% from 7.5%.

Factors constraining the credit rating

The companys net debt increased to UAH96m from UAH75.9m over 9M2008 (the amount of net debt recorded in the FY ended June 30, 2008 exceeded 6.7x of the EBITDA) under limited refinancing.

Growth of risks associated with foreign currency transactions under depreciating national currency.

The company's profitability and working capital indicators experience growing pressure due to augmenting positions of large foodstuff retailing chains.